BoE’s Greene: Pricing partly reflects global factors

• Pricing partly reflects global factors.
• Not all market pricing focused on UK.
• I am more concerned about supply side.
• Exchange rates haven’t gone as theory suggests.
• A falling dollar would be disinflationary for UK.
• Too early to say where dust will settle on dollar strength.

The market is pricing 87 bps of easing by year-end and 99% probability of a 25 bps cut at the upcoming BoE meeting. The market’s pricing was of course driven by the US tariffs announcement and the following global market rout.

This article was written by Giuseppe Dellamotta at www.forexlive.com.